Written by Debbie De Grote.
It is very common for agents to be excited about increasing their sales price to sell properties in the high-end and luxury home market. Maybe you’ve watched a few of the luxury real estate reality shows, and they sure make it look glamorous, don’t they?! As a coach to many superstars in luxury home markets across North America, I can tell you that what you see on the TV shows is not the reality of what really goes on in the trenches. But you probably already suspected that.
Keep reading for real-world advice on how to claim your slice of the luxury home market. Plus, check out my free webinar: How to Break Into and Dominate the Luxury Market.
Breaking into the high-end home market
Working high-end or luxury is not for the faint of heart or the light of budget, because you will discover that the clientele will have high and unique service expectations. While it can be challenging to work with luxury real estate clientele, it can also be a great opportunity for business. I have seen luxury agents leverage one luxury connection into many luxury deals.
In this arena, you can imagine that the competition is fierce. You will need to be able to find that special something you offer the seller and be able to sell the sizzle of how what you bring to the table is different than what anyone else can offer them. You will also need to be able to showcase the special features of the property. There are many nuances to properly showcasing a luxury home that top agents have to get just right!
You can see that there is a lot more to this than you may have originally thought—and a lot more to learn before you dive head first into your new venture into the luxury home market. If you do decide that high-end is something you want to break into, then you are going to want to first carefully identify the slice of the luxury home market that makes sense for you to focus on.
Invest the time now to ensure that your future investment of time and money will be well spent.
Choosing your slice of the luxury home market
Become a market expert! Each market has its luxury price point. You must study the pocket markets and price points you are interested in to determine the following: percentage of turnover, average price range, average days on market, major competitors, and the best ways to break in and get invited to the table.
Pricing luxury properties
Pricing these properties can be extremely challenging because the property or its location may be so unique that it is difficult to put an exact value on it. Luxury sellers often “don’t have to sell” and therefore may want to start a little higher. You will have to work on them to get them down to where they need to be. One top luxury agent we coach has a strategy: he calls it time over motivation. In other words, if they are motivated, he knows that in time he will get it where it needs to be to get it sold.
Often luxury agents will build out a timeline of price adjustments with the sellers so that they are in agreement as to what the seller will do and when. This makes it easier to go back to them for necessary adjustments. I have a great script for setting the stage for this the right way. If you would like a copy of it, send me an email at firstname.lastname@example.org and I’ll share it with you!
What is your next step?
I believe every agent should have three to five key sources for business opportunities. If you have decided that stepping up your price point is something you would like to do, listen to the luxury home market webinar. You’ll need to build a customized blueprint to ensure your investment of time and money is maximized. You must prepare to compete and win these luxury home listings!
Luxury home market webinar
Want to learn more? Check out our free webinar: How to Break Into and Dominate the Luxury Market. This excellent webinar—free to McKissock customers—is presented by Debbie De Grote of Excelleum Coaching & Consulting.